Hargreaves Lansdown has launched a free online enhanced annuity search engine to make it easier for consumers to shop around.
The firm said benefits of the new system were simple questions, instant quotations, guaranteed enhanced rates, it is fully underwritten with 2,673 conditions and 3,296 medications covered and provided'at-a-glance' comparisons.
Rates are sourced from nine providers which are estimated to cover 92 per cent of the enhanced annuity market. These include Aviva, Just Retirement and LV=.
The average increase in annual income for users of the system so far has been £1,095 and the average time taken to complete the survey was less than three minutes.
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Tom McPhail, head of pensions research at Hargreaves Lansdown, said: "Nearly half our customers already receive an enhanced annuity and with an average increase in annual income of £1,000 a year, over a typical 20 year retirement this is the equivalent of adding over £3.5 billion to the pension system every year."
Philip Brown, LV= head of retirement propositions: "This is a great initiative that will clearly benefit people approaching retirement. While we would always urge people to seek financial advice, there are many who prefer to self-serve or will not be catered for in a fee-based advice market. This type of service can help plug that gap by giving people direct access to annuity quotes that are specifically relevant to their lifestyle and medical circumstances, helping them make the most out of their pension savings."

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